Article 46.
Guaranteed Asset Protection Waivers.
§ 66‑440.  Definitions.
The following definitions apply in this Article:
(1)	Administrator. – A person that performs administrative or operational functions with respect to guaranteed asset protection waivers.
(2)	Borrower. – A debtor, retail buyer, or lessee under a vehicle finance agreement.
(3)	Creditor. – Any of the following:
a.	A lender in a loan or credit transaction.
b.	A lessor in a lease transaction.
c.	A vehicle dealer, including a motor vehicle dealer as that term is defined in G.S. 20‑286(11), that provides credit to or arranges financing for a purchaser of a vehicle.
d.	A seller in a commercial retail installment transaction.
e.	An assignee of any of the foregoing to whom the credit obligation is payable.
(4)	Free‑look period. – The period of time from the effective date of a guaranteed asset protection waiver until the date the borrower may cancel the contract without penalty, fees, or costs to the borrower.
(5)	Guaranteed asset protection waiver. – Either of the following:
a.	A contractual agreement in which a creditor agrees, with or without a separate charge, to cancel or waive all or part of amounts due on a borrower's vehicle finance agreement in the event of a total physical damage loss or unrecovered theft of the vehicle, which agreement shall be part of, or a separate addendum to, the vehicle finance agreement. The agreement may also provide, with or without a separate charge, a benefit that waives an amount or provides a borrower with a credit towards the purchase of a replacement vehicle.
b.	A contractual agreement in which a creditor agrees, with or without a separate charge, to cancel or waive all or part of amounts that may become due under a borrower's lease agreement as a result of excessive wear and use of a vehicle. The agreement must be part of, or a separate addendum to, the lease agreement. Excess wear and use waivers may also cancel or waive amounts due for excess mileage.
The term does not include a vehicle value protection agreement as defined in G.S. 66‑471(10).
(6)	Insurer. – An insurance company licensed, registered, or otherwise authorized to do business under Chapter 58 of the General Statutes.
(7)	Vehicle. – A motor vehicle, as that term is defined in G.S. 20‑286(10), as well as self‑propelled or towed vehicles designed for personal or commercial use, including, but not limited to, automobiles, trucks, motorcycles, recreational vehicles, all‑terrain vehicles, snowmobiles, campers, boats, personal watercraft, and trailers for motorcycles, boats, campers, and personal watercraft.
(8)	Vehicle finance agreement. – A loan, lease, or retail installment sales contract for the purchase or lease of a vehicle.  (2013‑193, s. 1; 2021‑172, s. 1.)